In today’s ever-changing world and dynamic lifestyle, it is difficult to live the way you want, apart from just being able to afford daily needs if you have only one source of income. Most people look at investment options as a secondary source of income that can be much more profitable than doing a salaried job. Having an alternate income source allows you to constantly upgrade your lifestyle without having to worry about a recession, one of the biggest economic barriers. One of the most noteworthy investment options you can look up to right now that stands out from other investments and is much less risky is Self Storage investments.
High Return on Investments (ROI) and Compound Annual Growth Rate (CAGR) make self-storage investment risk-free. If you want to invest in the self-storage industry, it is the perfect time to do so because the industry is exploding right now. It makes it a perfect move if you are in doubt about whether you should devote your hard-earned money to this business. Apart from high returns, there are many other advantages of investing in self-storage as well. Here are some of the benefits you can avail yourself of by putting your money into it.
High Return on Investments (ROI)
Self-storage has proven to be recession-proof and is projected to grow at a CAGR of 134.79% from 2020 to 2025. This reason alone can convince many investors that are looking for ways to invest in self-storage. Also, the demand for it can is stable as well, with 9.4% of households now renting self-storage units. According to SpareFoot data, the national average cost for all unit sizes is $87.89 per month, suggesting the opportunities are countless for investors.
Easy Availability Of Funds
Along with the large returns that self-storage offers, funding has become much easier through SBA loans and passive investment opportunities. The SBA 504 loan revolutionized storage financing. These loans allow buyers to pay as little as 10% for the project. This makes it much easier for investors just starting to enter the market. These loans typically have a fixed interest rate of 25 years without the need to refinance every 5 to 7 years. Interest rates are very competitive with market rates and help keep payments down.
Possibilities for Expansion
Another option for self-storage is the ability to offer additional products and services with your facility. Add-on products are purchased as bonuses with other products. Self-storage can provide not only locks and boxes but also other moving or transportable parts. Managers should always be properly trained on how to sell the various products and services they offer. It’s important to educate your customers without forcing articles. Self-storage operators who want to differentiate themselves from their competitors should be more aggressive and look for ancillary products and services that appeal to consumers.
For investors looking for their next opportunity, this is the best time to enter the self-storage business. Unfortunately, as the pandemic has forced many people to downsize and rebuild their homes and lives, self-storage is often required. If you’re thinking of joining a trend in the investment industry, don’t wait.